India and the UK are close to resolving the issues delaying the implementation of their Comprehensive Economic and Trade Agreement (CETA). A team of Indian officials is in London to advance discussions, Commerce Secretary Rajesh Agrawal said Monday.
On Sunday, Commerce and Industry Minister Piyush Goyal held a virtual meeting with UK Secretary of State for Business and Trade Peter Kyle regarding trade issues. Kyle visited India earlier this month to discuss issues surrounding CETA implementation.
CETA operationalisation, which cleared all legal milestones by March including clearance from both houses of the UK Parliament, has been delayed because the UK introduced surprise steel duties. Besides steel duties, two other issues regarding CETA implementation are under discussion.
“We are very close on all these issues and hope there will be resolution,” Agrawal said.
Starting July 1, 2026, the UK government will limit tariff-free steel imports, reducing overall quota volumes by 60% compared to the steel safeguard measure. Any imports above these levels will then face a 50% tariff. Other than steel duties, there are issues around the Carbon Border Adjustment Mechanism (CBAM) of the UK that would come into force from January 2027.
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The UK’s CBAM will apply to imports of aluminium, cement, fertiliser, hydrogen, iron and steel. Imports of these items where carbon emissions at the production stage exceed a threshold will incur a carbon tax on top of import duties.
India’s exports of iron and steel and their products to the UK stood at $ 893.4 million in 2025-26, which is a significant portion of the $13.4 billion in total merchandise exports to the UK.
EU Sanctions Package
Regarding some Indian companies being listed by the European Commission in the 21st package of sanctions against Russia for its war in Ukraine, the Commerce Secretary said India has engaged with the European Union on the issue. Indian entities were covered in earlier sanction packages against Russia.
“We are engaged and looking at what can be done,” he said, pointing out that India normally recognises sanctions imposed by the United Nations (UN).
TOPICSECONOMYUKThis article was first uploaded on June fifteen, twenty twenty-six, at forty-four minutes past six in the evening. © The Indian Express (P) Ltd